Coinbase Derivatives Launches CFTC-regulated Futures Contracts for XRP, Opening the Door for a Spot XRP ETF

Coinbase Derivatives, LLC has launched CFTC-regulated futures contracts for XRP, adding to the growing list of crypto derivatives available under U.S. regulatory oversight.

Coinbase Derivatives, LLC, a subsidiary of Coinbase (NASDAQ:COIN), has announced the launch of U.S. futures contracts for XRP, the cryptocurrency developed by Ripple.

What Happened: Coinbase Derivatives, LLC, a no-strike subsidiary of Coinbase (NASDAQ:COIN) Inc. (NASDAQ:COIN) and registered as a derivatives clearing organization with the Commodity Futures Trading Commission (CFTC), has announced the launch of futures contracts for XRP.

These futures contracts are fully regulated by the CFTC and will be available for trading on Monday, August 7, pending approval from the CFTC.

The move expands the selection of crypto derivatives products offered under U.S. regulatory oversight and could have implications for the approval of a spot XRP exchange-traded fund (ETF).

Why It Matters: Coinbase is now offering futures contracts for Bitcoin, Bitcoin Cash, DeChain, Ethereum, Litecoin, Monero, and XRP. These futures products are fully compliant with U.S. regulations.

Prior to this, many structured products of this nature were only accessible through offshore exchanges, which often raised concerns about trust and counterparty risk, particularly among institutional investors.

Now, with Coinbase offering these tools in the U.S., institutions have a safer and more reputable option for engaging in advanced trading strategies and structuring investments.

This development follows the recent introduction of Solana futures on the Chicago Mercantile Exchange (CME) and comes amid a backlog of 72 crypto-related ETF applications currently awaiting approval from the U.S. Securities and Exchange Commission. Several of those applications include XRP and Solana among their proposed holdings.

Several industry observers believe that the existence of a regulated futures market was a key factor in the SEC’s decision to finally approve the first Bitcoin and Ethereum ETFs earlier this year.

Both cryptocurrencies saw their futures products hit the market before their respective spot ETFs received the green light, a detail that U.S. regulators appeared to be focused on.

Now, with Coinbase launching futures contracts for XRP and other cryptocurrencies, it will be interesting to observe if this move, along with the growing number of crypto ETF applications, could lead to the approval of a spot XRP ETF in the near future.

XRP Price Action: XRP’s price dipped slightly following the news. As of writing, XRP is trading at $2.0736, down 2% on the day.

The cryptocurrency failed to maintain its gains above the key $2.10 resistance level and has since pulled back, retesting the broken support at $2.0488 as new resistance.

However, XRP remains above the crucial $2 psychological support, a level that traders and analysts will be closely monitoring. If maintained, the broader bullish sentiment around the futures launch and ETF momentum could fuel a rebound in the near term.